Dangote Cement has released its financial performance for the half year (H1) ended June 30, 2023, with sales volume hitting 5.4Mt. The pan-African region includes all the cement plant’s operations outside Nigeria. Total sales volume for the Group within the period was 13.4Mt.
The group’s revenue rose by 17.7 percent to N950.8 billion. Recurring profit after tax was up by 37.4 percent to N292.2billion while Profit After Tax (PAT) rose by 3.8percent to N178.6 billion.
According to the company’s six months unaudited results, sales volume for pan-African operation was up 11.6 percent compared to 4.9Mt in H1 2022. The total pan-African volume accounts for 40.4 percent of Group volumes in the half year.
The pan-African operations performance is attributable to robust demand, particularly from Ethiopia, Senegal, Zambia, and Congo. Hence pan-African revenues grew by 81.8 percent to N336.4 billion.
Arvind Pathak, Chief Executive Officer, Dangote Cement, who described the results as heartwarming said, “Dangote Cement delivered positive results in the first half of the year. Our Nigeria operations achieved a 22.6percent recovery in sales over the first quarter, which was impacted by the general elections and the cash crunch. However, the steep currency devaluation in mid-June slowed this volume recovery and increased the already inflated operating cost.”
He added, “We navigated the tough terrain, thanks to our strong operational framework and rigorous focus on cost management. I am pleased at the remarkable improvement witnessed in our pan-Africa operations.”
Pathak stated that the 0.4Mta grinding plant in Ghana has commenced operation while the completion of a 1.5Mta grinding plant in Cote d’Ivoire is on track.
Read also: Notore says strong headwinds dampen Q2 financial results
He said, “We will continue to focus on our strategic growth priorities, hinged on our vision of transforming Africa and building a sustainable future. I am optimistic that our business remains resilient and well positioned to overcome unforeseen macroeconomic headwinds.”
Dangote Cement is Africa’s leading cement producer with 52.0Mta capacity across Africa. A fully integrated quarry-to-customer producer, it has a production capacity of 35.25Mta in the home market, Nigeria. Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta; Gboko plant in Benue state has 4Mta; and Okpella plant in Edo state has 3Mta. Through recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries.
Dangote Cement has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (2.0Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
